New Square Loan in 2024

[SPPhotography1]

I’m at a bit of a loss for what else I need to do to be offered a new Square Loan at this point. I’ve been with Square for over 10 years, had 7 loans now that I’ve have paid back early every single time. Metrics are all in green, record sales year. In 2023, record numbers across the board, no refunds, no complaints or issues of any kind in our entire history. Current loan is 80% paid off, but no new offer in site. This is the kind of stuff that causes businesses to find someone else to process through! Please help! I’m sure I’ll get the same old excuses that you guys send to everyone about looking at every aspect of the business. But there isn’t a single aspect that isn’t way up. I’m not sure if there is a new process they are using now, or if there is some kind of issue with my banking or something else I’m not thinking about or aware of. Any help would be much appreciated. Thanks, because I could really use some new capital to start the year off with and reinvest into my business!

[Stacelyn24 · Accepted solution]

I'm really sorry to hear about your frustration with the loan offers. I understand how important it is to feel valued, especially as a loyal customer. Let me try to address your concerns and provide some clarity.

Loan Offers and Qualification Parameters

Square’s loan offers are based on a variety of factors, and while past trends have shown offers at certain thresholds, the exact parameters can change over time and are not always disclosed in detail. Here are a few points to consider:

• Dynamic Criteria: Square uses a complex set of algorithms that take into account not just the repayment percentage but also your recent sales history, account health, and overall business performance.
• Market Conditions: External market conditions and internal policy changes can also impact when and how loan offers are extended.

Value Beyond Transaction Fees

I understand that a 3% card transaction fee can seem high compared to other providers, but Square offers several features and benefits that help justify this cost:

• Integrated Ecosystem: Square provides a comprehensive suite of tools that work seamlessly together, from point-of-sale systems to online stores, invoicing, and inventory management.
• Ease of Use: The user-friendly interface and intuitive design make managing your business simpler and more efficient, saving you time and reducing the need for extensive training.
• Reliable Support: Square offers robust customer support and resources to help you resolve issues quickly and keep your business running smoothly.
• Secure Transactions: Advanced security measures protect your business and customers from fraud and data breaches.
• Analytics and Reporting: Detailed analytics and reporting tools help you understand your business performance and make informed decisions.

I understand the disappointment regarding the loan offer, please know that Square regularly reviews its criteria and your status. I recommend reaching out to Square’s customer support for a more personalized review of your account and to express your concerns directly.

[TheRealChipA · Accepted solution]

Good news, bad news, eh @cmeshine.  There are a number of reasons that COULD be part of why your new offer was lower.

1. Square might be slowing down on how much loan exposure they want to have on their balance sheet.  They are, after all, a publicly traded company that has to answer to their shareholders and investors.
2. If our sales are flat or at least not growing at a good rate to cover inflation and higher interest, then Square’s algorithm understands that inflation is eating into our available cash to pay bills, etc.  Flat sales (or very slowly growing sales) are always red flags to lenders, Square or not.
3. Sometimes how long it takes us to pay off our current loans can be a factor.  Let’s say that previous loans were paid off with automatic payments in 8-10 months in the past.  But for this current loan it took us 12-15 months.  That tells Square that our card processing volume can’t keep you with higher loan amounts.  Yes, they give us 18 months to fully pay a loan, but they obviously prefer that we pay them off closer to the 12 month mark.
4. If our cash/card ratio drastically changes, and cash spikes or is consistently higher than historical for our business, that is another red flag.  Since Square must only consider card volume when calculating repayment rates this can become a problem.

Of course, I’m not saying that any of these contributed to your lower offer.  I’m just throwing out a few reasons why this CAN happen.

[BWcreamery]

I have been watching for a while now. I’m at 95% and still nothing. Owe $450 on a $9350 loan (10700 after fees) 

Received last loan in December. I’m shocked so many of us are this close to paying off or have completely paid off. 

Praying we all get one soon!

[Jjpainting]

Yeah I’ve seen a lot of posts on here of people’s last loan received last November/December who are waiting. My last one was November 28th. I got $1400 left to pay on a $14700 loan ($16927 total with fees). Frustrating. 

[thehealingplant]

No matter anything else, it's the lack of transparency. Ours was November 30th ironically enough and we just hit 78% today and will be under the payoff on the current loan credited to last by the end of the weekend. I'd take the exact same offer at this point but anything we can do to help keep us afloat in marketing.

[jackiebee12]

my last one was November 8 at 50% paid off and was almost double previous one. i had high hopes that I would get another at the 50% mark again or close after. 

i’m currently at 86% paid off and about to reach the “loan amount”. i’ve already paid off what was credited. i’ve always reached the minimum amount within 2-3 weeks. 

im in the same boat. if i can get what the last one was, it will be a huge relief. our first year took a lot of hits and i’ve basically been playing catch up ever since. 

we need to fix our parking lot and some spots in our building that have been leaking from all the heavy rain we’ve been getting 

[olivesageeee]

Sitting in the same boat! Hoping for us all. 

[Twpchair]

Unfortunately, it's been trending higher percentage paid back or completely paid off. Good luck to you!

[Twpchair]

Ughhhhh! Like I said I don't work for Square but if you watch last year's trend it was really dry June and and July were rough. But come September it was booming. I really hope you and all the others waiting come through fast!

[olivesageeee]

Yep! My last was in November, currently sitting higher than I’ve ever had to wait at 84% and nothing. 

[Twpchair]

I don't work for Square but I watch the trends. Especially, last summer my offer came in June and lowered than normal. Please 🙏 believe me as a fellow business owner they are watching the market and I don't ever bring politics into a conservative but watch the market and it's NOT just square it's all lending holding tight. I wish you the best!

[locksmithnick]

My brother, also a sole proprietor, got a new Square loan about a month ago at 76% paid.  My father got an offer just last week at 82% paid (but he had been making prepayments which i believe delayed his).

They’re still offering loans. 

[itisnotjustpiza]

4 weeks paid off. All Green.  No offer. Food industry. 

[ohboi]

Almost 2 months no new offer. Food industry, all green metrics, $260,000 processed in card sales so far in a year. We have had many loans and all of them came through at different percentages 60-80% and even 91% but something the higher ups (CEO level) at square have done. Remember they built the algorithms so they have the ability to change it and change which industries receive them. 

[Healthyketo]

🤔 I’m in the food industry as well. Maybe square is cutting us off. 

[jackiebee12]

i’m also in the food industry 😕

[Jjpainting]

Well if it makes you feel any better, I am not in the food industry and I’m right here with you lol

[Jjpainting]

I haven’t had my daily update yet today, which the past week or so they have come before 3pm est.  Maybe I’ll get lucky today 🤪

[itisnotjustpiza]

Maybe lower sales in the summer months with food trucks out and about. Higher labor and food costs trending. Less stable market. But also found an article stating this…. “ Block in 2023 replaced the head of its merchant Square business, Alyssa Henry, with Block and Twitter founder Jack Dorsey.”

[ohboi]

Remember Jack Dorsey Co founded square. Also he is a Programmer and he took back the reigns of the company and probably made some changes to square loans when he got back in the office. Notice the loans have been wacky for restaurants in particular since the end of 2023 and all of this year 2024. I’m just putting 2 and 2 together. I believe if they just came out and said we are slowing down on loans we wouldn’t be eager awaiting new offers. Lack of transparency is really why we are all here.

[Toripori]

UK based Food Industry been paid in full since April 17th, metrics are Green, up on last year! I’m enjoying not paying 20% daily now so not sure if I’d take a loan again. Square could miss a lot of windows for lending to those like me that will now think very carefully, being diligent in just putting my own money aside for bulk stock buying and a second premises instead.

[Hawaiicraves]

Well I did wake up to a loan offer today. 

$114k. Much less than last loan.  

85 percent paid off currently when received offer. 

I think for once I’m more excited about only being 15 percent left on current loan ,than I am of new loan offer lol.

Good luck everyone !

[Healthyketo]

Wow! Congrats! Are you in the food industry by chance? Maybe there’s hope for the rest of us! Glad to hear someone finally got an offer!